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Nassau County's Fiscal Crisis

Something is wrong when one of the most prosperous counties in the nation goes broke in boom times. The fiscal disaster in Nassau County on Long Island provides a cautionary tale for political leaders everywhere. Last month voters revolted and put the County Legislature into the hands of the Democrats for the first time in modern history. Now the Democrats have to work with an unpopular Republican county executive to eliminate a huge budget deficit in the year beginning Jan. 1. Layoffs, service cutbacks, pay cuts, tax increases -- all seem possible for the county's 1.3 million residents.

The county executive, Thomas Gulotta, has announced cancellation of contracts and postponement of capital projects to close a $100 million deficit in a $2.2 billion budget. But since only $700 million of the budget involves discretionary spending, more austerity measures will be necessary.

Like New York City's fiscal crisis of the 1970's, the Nassau situation flows from the abuses of longtime one-party rule. A complacent political elite came to think it would never be punished for letting costs soar out of control and handing out patronage jobs, contracts and wage increases to party workers, campaign contributors and friendly unions. The political standoff is so poisonous right now that intervention may be required from Gov. George Pataki or State Comptroller Carl McCall and the Legislature in Albany. At the least, Mr. Pataki and Mr. McCall should order an audit of the county's chaotic books. Taxpayers cannot be asked to pay more or accept diminished services, and county employees cannot be asked to give up wages or benefits, without an objective accounting.

In addition, the affluent must share the pain while services for the poor are protected. The Republican organization can no longer reward its political allies with fat contracts, patronage jobs and cozy labor settlements. Labor practices that have led to huge overtime costs for police and correction officers have to be re-examined. A tax increase should be considered. For years, the county's taxes have remained flat while the government resorted to budget gimmicks and phony numbers, reducing the county's bonds to junk-bond status.

Right now the government is still paralyzed by partisan feuding. The people of Nassau County deserve better than stalemate.